BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Stock markets in Europe are expected to open on a positive note on Tuesday amidst expectations of a de-escalation in global trade tensions. Renewed hopes of another rate cut by the Federal Reserve in September also supported sentiment. However, concerns over the U.S. tax bill are also expected to sway sentiment.
Wall Street had closed on a positive note on Monday amidst renewed hopes of resolution of trade related disputes between the U.S. and its trading partners. The Dow Jones Industrial Average added 0.63 percent to finish trading at 44,094.77. The Nasdaq Composite also rallied 0.47 percent to close trading at a record high of 20,369.73.
European markets had however closed on a negative note on Monday as markets awaited clarity on trade negotiations. Switzerland's SMI plunged 0.60 percent. Germany's DAX lost 0.51 percent. U.K.'s FTSE 100 dropped 0.43 percent. The pan-European Stoxx-50 declined 0.38 percent. France's CAC 40 lost 0.33 percent.
Current indications from the European stock futures indicate a mildly positive sentiment. The DAX Futures (Sep) is trading 0.18 percent lower. The CAC 40 Futures (Jul) has increased 0.18 percent. The FTSE 100 Futures (Sep) has edged up 0.11 percent. The pan-European Stoxx 50 Futures (Sep) has also added 0.11 percent. The SMI Futures (Sep) had closed 0.38 percent lower on Monday.
American stock futures are trading below the flatline. The US 30 (DJIA) is trading 0.12 percent lower, whereas the US500 (S&P 500) is trading 0.17 percent below the flatline.
Asian stock markets are trading on a mixed note amidst trade tariff uncertainties ahead of the July 9 trade tariff deadline. South Korea's KOSPI has surged 1.2 percent tracking Wall Street's gains on Monday. DJ New Zealand has rallied 0.83 percent. China's Shanghai Composite has gained 0.24 percent. India's Nifty 50 has edged up 0.10 percent. Australia's S&P ASX 200 is trading close to the flatline. Japan's Nikkei 225 however dropped more than a percent amidst reports of U.S. President Donald Trump threatening fresh tariffs against Tokyo. Markets in Hong Kong are closed for a holiday.
The Dollar Index, a measure of the U.S. dollar's strength relative to six currencies, has declined 0.13 percent overnight to 96.75. Concerns over the tax bill as well as trade deals weighed on the greenback. The EUR/USD pair has edged down 0.02 percent to 1.1786 whereas the GBP/USD pair has edged up 0.09 percent to trade at 1.3741.
Amidst the dollar's weakness, the yellow metal extended gains with an emphatic rally. Gold Futures for August settlement is trading at $3,337.05, which is 0.89 percent higher than the previous close of $3,307.70.
Expectations of an OPEC+ output hike in August dragged down crude oil prices. Oil prices have tumbled close to half a percent from Monday's levels. Brent Crude Futures for September settlement is at $66.42 versus $66.74 a day ago. WTI Crude Futures for August settlement is at $64.76 versus $65.11 at close on Monday.
Markets anticipate an uptick in inflation in the flash readings for June due from the Euro Area on Tuesday. Also due for release on Tuesday are Housing Prices report for June from U.K., Retail Sales reading for May and Manufacturing PMI for June from Switzerland as well as unemployment data for June from Germany.
Market spotlight would also be on the ECB Forum on Central Banking as well as speeches by ECB President Christine Lagarde and Bank of England Governor Andrew Bailey.
Major updates to earnings due from the region include Sodexo, Hornbach-Baumarkt, Ricardo, Kitwave Group, Supreme and Mercia Asset Management.
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